Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

ORGANISED REFINERS
Although organised refiners are few, the table below records the published charges levied by an organised refiner. The
refining (to 995 purity) and gold loss charges reduce on a graduated scale according to weight.
Assumptions:
Gold price US$ 300
Exchange rate Rs 48 per US dollar
Scrap purity K20
PRICING AND PROFITABILITY
GOLD REFINING
Melting and refining gold jewellery
on a gross weight basis Rupees Approximate US dollars
Under 4 kg Rs 40 per 10 g US$ 2.59 per oz
10 kg or more Rs 6 per 10 g US$ 0.39 per oz
Gold assaying
Dip muster sample Rs 200 US$ 4.17
Cut sample Rs 100 US$ 2.08
Urgent assay Rs 400 US$ 8.33
Duplicate certificate Rs 50 US$ 1.04
Gold loss on refining gold jewellery
on a fine weight basis
Under 5 kg. At 7 g per 1,000 g Rs 26.98 per 10 g refined US$ 1.75 per oz refined
10 kg or more. Nil Nil
The table below indicates the approximate cost of refining old gold jewellery into an assayed, certified and stamped slab of
gold ready for recycling.
Gross weight Rupees Approximate US dollars
Under 4 kg Rs 64.17 per 10 g US$ 4.16 per oz
10 kg or more Rs 8.50 per 10 g US$ 0.55 per oz
SMALL REFINERS
The bulk of the refining of old gold jewellery is undertaken by thousands of small refiners in cities, towns and villages. Both
large and small retailers and fabricators use them as they are so accessible, and their charges are significantly less when
refining small quantities.
Some retailers and fabricators also undertake their own refining in-house. Some recycle old gold jewellery (after assay)
without refining it.
Using the same gold price, exchange rate and scrap purity assumptions, the table below indicates the charge levied by a
reputable small refiner in a major city. It is indicative only. Some small refiners can charge as low as Rs 10 per 10 g when
they retain the silver content.
Category Rupees Approximate US dollars
Melting and refining Rs 15 per 10 g US$ 0.97 per oz
Gold loss at 1.5 g per 1000 g Rs 6.36 per 10 g fine US$ 0.41 per oz fine
Assaying Rs 1.50 per 10 g US$ 0.10 per oz
Total cost Rs 22.29 per 10 g US$ 1.44 per oz
Although small refiners are much less expensive for refining small quantities, top end retailers will be obliged increasingly to
use organised refiners to ensure that the purity of recycled jewellery meets hallmarking standards.
160
AN INTRODUCTION TO THE INDIAN GOLD MARKET